The Massachusetts Legislature just passed legislation modernizing the procedure for withdrawing land from the registered land system. The legislation, part of the Legislature’s Housing Bond Bill, now goes to the governor’s desk for approval. Pierce Atwood attorney Kathleen Heyer participated in drafting this important legislation.

Recorded Land vs. Registered Land

There are two categories of real estate in Massachusetts - recorded land and registered land. The vast majority of real estate in Massachusetts is recorded land, meaning that documents affecting interests in real property are recorded with the appropriate Registry of Deeds. When you see a deed or mortgage, there is a book and page number indicating where the document is recorded with the Registry. No court involvement is required.

The other type of real estate is registered land, also known as the “Torrens” system. In this system, the Land Court issues a decree certifying the owner’s title to land shown on plans the court has approved. Because the Land Court oversees the registration system, all documents affecting registered land must conform to specific rules and regulations, and are subject to review by the court prior to acceptance for registration. Additionally, changes to certificates of title and other registered land documents require the filing of a court action.

The process of obtaining Land Court approval of registered land documents or changes to those documents can be time-consuming, expensive, and frustrating, given the many technicalities and pitfalls of working within the registered land system.

Removing Land from Registered Land System

While Pierce Atwood’s attorneys are experienced at navigating the registered land system, one solution to the problems posed by registered land is simply to remove the land from the system. Until now, that procedure was often lengthy, technically complex, and expensive, leading many to consider it less viable than simply working within the system, however costly and time-consuming it might be.

However, with this latest legislation, the process by which a property owner may remove their land from the registered land system has been reformed. The new process is relatively straightforward and imposes requirements on the Land Court to ensure that withdrawal requests are reviewed and approved in a timely manner. Indeed, if all necessary documentation is provided to the court with an initial request for voluntary withdrawal, the process can be completed in a matter of weeks.

While there are benefits to the registered land system, including the certainty that a certificate of title provides, the complexities of dealing with the system can impose significant costs and delays on those who wish to subdivide, alter, or develop registered land. Given the new process for voluntary withdrawal, it may be appropriate in some cases to consider withdrawal as the first step in dealing with registered land.